Cyber insurance is becoming an increasingly important consideration for businesses of all sizes, as the frequency and severity of cyber-attacks continue to rise. In recent years insurers have become more cautious about underwriting cyber insurance policies as they try to minimise their exposure to risk and creating a ‘hard market’ for cyber insurance. This can make it more challenging for many businesses to secure coverage, but there are steps they can take to present a more favourable risk profile to insurers.

Cybersecurity

One of the most important things a client can do is to demonstrate their commitment to cybersecurity. Insurers will want to see that a company has taken a proactive approach to managing cyber risks, rather than waiting for an incident to occur before taking action.

This includes having robust security policies and procedures in place, as well as investing in cybersecurity technology and training for employees. A Cyber Essentials certification is an indicator that an organisation has taken steps to protect against some of the most common cyber threats.

Working with an experienced IT service provider can assist in all areas of cybersecurity systems and provided tailored and comprehensive solutions. Businesses can also take steps to improve their cybersecurity by implementing secure password policies and Multi-factor Authentication.

Loss Experience

Another key consideration is the client’s past loss experience. If a business has a history of successful cyber-attacks, it will be more difficult for them to secure coverage in a hard market. On the other hand, if a business has a good track record of protecting their networks and systems, they will be seen as a lower risk.

If you have been subject to successful cyber attacks in the past, insurers may look more favourably on businesses who demonstrate an awareness about the previous weaknesses in systems or processes and have taken measures to fix or improve these.

Transparency

Companies can also present a more favourable risk profile by being transparent with insurers about their current cyber risk exposures. This includes disclosing any known vulnerabilities or weaknesses in their systems and networks, as well as sharing information about past incidents and the steps they have taken to mitigate similar risks in the future.

Incident Response

It is also important to have an incident response plan in place, and to show the insurer that you have a plan and have tested it. This shows that you are prepared to respond to any cyber security incident in an organised and effective manner, reducing the financial impact of a loss.

An incident response plan can form part of a cyber security business continuity plan, which is highly recommended to minimise business disruption in the event of a cyber-attack.

Working with an experienced broker

Finally, businesses should work with an experienced broker who understands the cyber insurance market and can help them identify the most suitable coverage options and insurer to work with. A broker can also help clients present a more favourable risk profile to insurers by providing additional information and supporting documentation, such as security assessments and penetration testing reports.